GOBankingRates conducted a new study that determined the salary required in every state to maintain the “30 percent of income” rule of thumb, based on rent data from Zillow and mean annual wages from the Bureau of Labor Statistics. The results of this study paint a gloomy picture of affordability in the U.S.

The Ideal Salary to Afford Rent in Every State

One of the study’s most distressing discoveries is how inadequate incomes across the country are to cover rents. In fact, there are only 11 states where median rental costs consume 30 percent or less of income.

There are two places — California and Washington, D.C. — where you need to earn at least $100,000 a year to afford the median rent. Based on median rents of $2,518 in California and $2,711 in Washington, you’d need to earn nearly $8,400 a month to afford the former and over $9,000 a month to afford the latter. California and Washington are the only two places in the country that require six-figure incomes. Affordability, however, is all relative.

For example, in Colorado, the wage you need to afford the median rent is much less than Washington’s $108,440 a year. But in Colorado, the gap between the salary you need — $77,080 — and the state’s actual annual wage — $54,050 — is larger than in Washington, which undermines its affordability. And Colorado is just one of 39 states where average annual incomes fall below the required threshold to afford rent.

The Bottom Line

The study highlights a continuing issue in recent years of wages not keeping up with rising living costs. On top of this, across the U.S., the supply of available houses to buy is low, pushing up home prices. See the complete results of the study below, and find out where your state falls.

State

Median Rent

Annual Salary Needed

Average Annual Wage

Alabama

$998

$39,920

$43,170

Alaska

$1,748

$69,920

$57,750

Arizona

$1,356

$54,240

$48,160

Arkansas

$953

$38,120

$40,530

California

$2,518

$100,720

$57,190

Colorado

$1,927

$77,080

$54,050

Connecticut

$1,803

$72,120

$59,410

Delaware

$1,435

$57,400

$52,200

District of Columbia

$2,711

$108,440

$85,720

Florida

$1,590

$63,600

$44,790

Georgia

$1,262

$50,480

$47,200

Hawaii

$2,481

$99,240

$52,050

Idaho

$1,238

$49,520

$42,240

Illinois

$1,463

$58,520

$52,410

Indiana

$1,113

$44,520

$43,950

Iowa

$1,057

$42,280

$44,730

Kansas

$1,051

$42,040

$44,570

Kentucky

$1,084

$43,360

$42,410

Louisiana

$1,245

$49,800

$41,590

Maine

$1,466

$58,640

$45,300

Maryland

$1,807

$72,280

$57,270

Massachusetts

$2,252

$90,080

$62,110

Michigan

$1,110

$44,400

$48,300

Minnesota

$1,449

$57,960

$52,730

Mississippi

$1,055

$42,200

$38,910

Missouri

$1,047

$41,880

$45,520

Montana

$1,234

$49,360

$42,400

Nebraska

$1,253

$50,120

$45,530

Nevada

$1,423

$56,920

$45,040

New Hampshire

$1,748

$69,920

$51,040

New Jersey

$2,062

$82,480

$56,970

New Mexico

$1,200

$48,000

$44,840

New York

$2,050

$82,000

$60,100

North Carolina

$1,208

$48,320

$46,080

North Dakota

$1,290

$51,600

$48,130

Ohio

$1,113

$44,520

$46,950

Oklahoma

$950

$38,000

$43,340

Oregon

$1,707

$68,280

$51,010

Pennsylvania

$1,242

$49,680

$48,760

Rhode Island

$1,725

$69,000

$53,110

South Carolina

$1,209

$48,360

$42,240

South Dakota

$1,213

$48,520

$40,770

Tennessee

$1,153

$46,120

$43,550

Texas

$1,455

$58,200

$48,700

Utah

$1,526

$61,040

$46,460

Vermont

$1,599

$63,960

$48,840

Virginia

$1,452

$58,080

$53,980

Washington

$1,838

$73,520

$57,480

West Virginia

$888

$35,520

$41,400

Wisconsin

$1,141

$45,640

$46,270

Wyoming

$1,149

$45,960

$47,650

With nearly four-fifths of U.S. states rent-burdened, HUD’s definition might be up for revision. The good news is you can always find pockets of affordability, though it requires persistence and knowing what you want. One of the first choices you need to make is whether you’re looking to rent or own your home.

Methodology: GOBankingRates calculated the salary needed to afford rent in every state by using the budget rule of thumb that says to keep housing costs at 30 percent or less of your income. GOBankingRates found the median rent for single-family residences in each state, sourced from Zillow, and worked backward to find the monthly income needed to have monthly and yearly rent consume 30 percent or less of income. Average annual wages were sourced from the Bureau of Labor Statistics.

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